TaxTMI 
TaxTMI 
2015 (11) TMI 667
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....cise Tariff. Exemption Notification No.4/97-CE dated 01.03.1997 (Sl.No.113) and Notification No.5/99-CE dated 28.02.1999 (Sl.No.129) provided for full duty exemption in respect of yarn of polyester staple fiber containing cotton but not containing any other textile material and in which the proportion of polyester staple fiber is less than 70% by weight of total fiber content if the yarn is supplied to registered Apex Handloom Cooperative Society, National Handloom Development Corporation or State Handloom Development Corporation and the payment of the yarn supplied is made by cheque drawn by such cooperative society or corporation, as the case may be, on its own bank account. The exemption was further subject to the condition that the manu....
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....ovt. of Punjab had not used the duty free yarn supplied by the respondent for handloom, but the yarn had been illicitly diverted to the Power Loom Units. It is on this basis that the proceedings were initiated against the respondent for recovery of Central Excise duty of Rs. 8,02,691 under proviso to section 11A (1) of Central Excise Rules, 1944 and also interest on this duty under section 11AB and imposition of penalty on them under section 11 AC. The SCN was adjudicated by the Additional Commissioner vide Order in Original dated 16.01.2004 by which the above duty demand was confirmed against the respondent alongwith interest on it under section 11AB and while penalty of equal amount was imposed on the respondent under section 11AC, anothe....
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....he Tribunal set aside the Commissioner (Appeal)'s order on the point of penalty and interest and restored the lower authoritys order dated 16.01.2004 on these points. This order was an ex-parte order, as on the date of hearing none representing the respondent had appeared. 3. The respondent filed an appeal before Honble Himachal Pradesh High Court against this order of the Tribunal. The Honble High Court vide Order dated 04.03.2015 set aside the Tribunals final order dated 20th March, 2009 and remanded the matter to the Tribunal for denovo decision after hearing the respondent. By this order, the respondent were directed to appear before the Tribunal on 08.04.2015 and the Tribunal was directed to decide this appeal in accordance with....
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....e 173 Q, that yarn had been supplied to the Apex Handloom Cooperative Society constituted by the Government of Punjab, that letter head of the society itself mentions it as Punjab Government Partnership Undertaking, that in view of this, the respondent could not even imagine that the yarn supplied by them to the Punjab State Handloom Weaver's Apex Cooperative Society would be diverted to Power Loom Units and would not be supplied to the handloom units more so, when the payment for the yarn supplied had been received by them from Punjab State Handloom Weavers Apex Co-operative Society by Cheque drawn on its own Bank Account, that difference in the composition of Polyester Fiber is only in respect of one consignment valued at Rs. 2,13,000/- a....
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.... its own bank account and that a certificate issued by authorized officer of the Handloom Cooperative Society, National Handloom Development Corporation or State Government Handloom Development Corporation, as the case may be, has been produced certifying that the yarn would be used only on the handlooms. In the present case, the goods were supplied to Punjab State Handloom Weavers Apex Cooperative Society which as its letter head shows, as Punjab Government Partnership Undertaking. Though the supplies at nil rate of duty to the cooperative society had been made against letters issued by Punjab State Handloom Weavers Apex Cooperative Society simply stating that the society is exempt from Central Excise duty leviable under Chapter 55 by the ....